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PROJECT REPORT SUBMITTED TO ICFAI, IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION 2009-2010

GUIDE: BY: Mrs .Mathala Juliet

SUBMITTED Ms. ALPIKA .S. RAIKAR ENROLMENT No.8NBGP031 (0801215210)

INC (ICFAI National College) Porvorim Goa.

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DECLARATION________________________ _
Hereby declare that the project report entitled “A COMPARITIVE STUDY OF CONSUMER PREFERENCE TOWARDS NESTLE AND CADBURY CHOCOLATES” submitted for the degree of Master of Business Administration, is my original work and the project report has not formed the basis for the award of any diploma, degree, associate ship, fellowship or similar other titles. It has not been submitted to any other university or institution for the award of any degree or diploma.

Chetan Hiremath for his advice and for providing the necessary inputs which were of great benefit to me. Lastly I would like to thank my parents and friends Raksha Kalangutkar who motivated me and helped me complete my management thesis.
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.ACKNOWLEDGEMENT_________________ __
I would like to thank the centre head of INC Mr. Imran Ahmad for giving me the opportunity to do this management thesis. I would also like to thank my mentor and guide Mrs . Mathala Juliet for her consistent guidance and support. I would also thank Mr.

2. Anandan Objective –To study the influence of packaging in brand of toothpaste. which chocolates are preferred more. To view the segments being targeted by these brands in the market.Brand management. Data collation – Pilot test to ensure validity. Methodology – Source of data for arriving at a conclusion is primary data. vole-Ι No 3 page 45-57. Title – Nestle v/s Cadbury Objective – To find out potential for new chocolate players To get familiar with their marketing strategies separately. Author – C.sample size of 125 out of which 70 were women and 55were men. Hence the survey regarding the influence of packaging in selection of products for toothpaste was conducted at various retail outlets and some residence. Title –To study the influence of packaging affecting brand selection in toothpaste industry.
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. family and shopkeepers. Up to what extent do the public respond to their products i.e. Data was basically collected from housewives. Conclusion – Data collected fro users help to fin tune their marketing strategies for profitability and customer loyally.Literature REVIEW______________________
Literature review done to support the study –
1. students. Reference. Sampling.

).Detailed information from both primary and secondary sources was collected and analyzed. These included pan shops. Sampling – random sampling was used wherein people were interviewed and questionnaire were filed around 100. Business India. Nestle and indiainfoline. etc.com Extensive use of secondary information in the form of magazines/journals/newspapers clippings.com/document_downloads/14817717? extension=doc&secret_password=&step_intrested=true Methodology . These were: Information: Industry statistics. infrastructure problems. Extensive interviews were conducted with retailers in the LUDHIANA area.
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. This included: Primary Sources To analyse buying behavior and in order to gain an insight into the buyer needsatisfaction level. bakeries. Also measures being adopted for cocoa production development. grocery shops. askjeeves.Author. Internet websites Of Cadbury’s. a questionnaire was formulated and administered among 80 people. Secondary Sources A number of secondary sources of information were used. etc. etc.Radha Krishna Iyear Reference– http://www. etc. departmental stores. such as Business World.com. Business Today. Brand Equity.scribd. A&M. future outlook. They provided information on various facts of chocolate distribution such as Point-of – purchase material (dispensers etc. A distributor was also interviewed so as to get pertinent information regarding the most important ‘P’ of FMCG marketing – Place. Economic Times. critical informational regarding the policies of the present players in the market. problems facing the industry.

with duties being reduced (in a phased manner). Hence. the future of the industry seems to upbeat. The industry has made recommendations to the Indian government to go back to the Special item list category. The Indian chocolate market is transforming and new players (Sara Lee is planning to set up base in India) are entering the market. considering the low per capita consumption of chocolates. even 0% excise) and non-availability of quality cocoa in the country. in order to safeguard the domestic industry.
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. These companies/brands have become much more market savvy. time of purchase and choice of point of purchase.Conclusion .The growth and expansion of the Indian chocolate market in the past has been hampered. To analyze the planning of brand choice. However.S Hundal Objectives – To ascertain intensity of brand loyalty and offer useful implication for marketers. import of chocolates has been put in the OGL category. continuous marketing focus by the players in the market has resulted in the industry looking up like never before. Title – Significant consideration in the purchase of consumer durables Author.B. Also. Conclusion – the study reveled that the consumers have a preference toward particular brand of consume durables and are not ready to buy any other. 3. due to stiff excise duties on chocolates (at 18 percent – while other agro based products are being charged as low as 8% and a few.

Authority) in making purchase decision.scribd. Methodology – data collection methods are secondary and survey research by questionnaire.4. So the sample size was 90. of which 45 were usable. Objectives – to find out weather coercive strategies are being used by couple (talking loudly. Moreover an understanding of spousal behavioral interaction in a decisions may guide marketers in designing particular communication massages. Title – Research proposal on consumer decision analysis for Purchase of fruit Drinks. It was found out that spouse do not use coercion consistently across purchase decisions.
5. Author –Protik Basu Reference-http://www. Anger.
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. Methodology – A questionnaire was served to 100 married couples. of which 63 completely filled the questionnaires. Conclusion – spouse decision behavior is the key to understand how families arrive at purchase decisions. Title – Use of Coercive Strategies in Purchase decisions: Relationship between influence strategies and the degree of Involvement. looking unhappy.com/document_downloads/13103855? extension=pdf&skic Objectives – to determine the factors influencing the consumer decision while buying fruit drinks in the age group of 17-30 in the city of Pune.

Sample size – 100 sample were used for analysis. Also. The measurement instrument in the questionnaire was a five point likert scale. Analysis techniques – Factor analysis is conducted to dicerm out of the various reasons for purchasing any particular brand of fruit drink. The most preferred drink is Frooti followed by Tropicana and Real
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. There were 2factors which did not have any significant impact. it was found out that the most preferred channel for purchase in retail stores. In factor analysis the researcher found out 5 factors which mainly have an impact on the purchase of a fruit drink. Conclusion – with correlation test the attributes that were associated with consumer buying various fruit rinks and which in turn drive their purchase decision for the same were identified. The most preferred SKU(quantity) is 200ml packs which could be due to convenience.

Trend of ongoing changes in their likings would be shown in the report. During this research I would be interacting with people of “North Goa”. whether they buy small. advertisement. I also would come to know which particular brand of chocolate is most preferred by people of different age groups. which are consumed by people of all ages.
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. brand loyalty etc. big or family pack. In this report I would explain the entire research and facts product wise with the help of graphs and would compare both companies. quality. After this research I would come to know how people perceives these products on the variables like price.INTRODUCTION_______________________ __
In this research I have survey the product performance and buying behavior of two famous brands of chocolates– Nestle and Cadbury.
In this research I would have to survey and find out how frequently and how much chocolate people consume. satisfaction. taste. packaging.

he must know the liking or disliking of the customers. for the transportation. So consumer is a very important person to a marketer. As consumers. based on happiness. gratification. Consumer decides what to purchase. “consumer is the supreme in the market”. individual preferences enable choice of objectives/goals. enjoyment. It assumes a real or imagined "choice" between alternatives and the possibility of rank ordering of these alternatives. Thus marketer must understand this.
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. national or international. Preference (or "taste") is a concept. More generally. for the banking. particularly economics. He must also know the time and the quantity of goods and services. from where to purchase. for whom to purchase. a consumer may purchase. The study of the consumer preference not only focuses on how and why consumers make buying decision. In order to become a successful marketer. but also focuses on how and why consumers make choice of the goods they buy and their evaluation of these goods after use. it can be seen as a source of motivation. The decision we make concerning our consumption behavior affect the demand for the basic raw materials. In cognitive sciences. so that he may store the goods or provide the services according to the likings of the consumers. Gone are the days when the concept of market was let the buyer’s beware or when the market was mainly the seller’s market. they effect the employment of workers and deployment of resources and success of some industries and failures of others. Now the whole concept of consumer’s sovereignty prevails. In this sense. used in the social sciences. why to purchase. for the production. we play a very vital role in the health of the economy local. utility they provide. The manufacturers produce and the sellers sell whatever the consumer likes. and how much to purchase.CONSUMER PREFERENCE________________
All marketing starts with the consumer. satisfaction.

maintain or even dispose of the product and new ways of behaving that will satisfy not only the consumer’s needs. Despite of the fact that learning is all pervasive in our lives.So for success of any company or product promotion it is very necessary to depart its concentration towards consumer preference.
SCOPE OF THE STUDY___________________
As learning is a human activity and is as natural. but the marketer’s objectives. as breathing. how to use.
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. psychologists do not agree on how learning takes place. potential consumers benefit. They want consumers to learn about their products. They want to teach consumers in their roles as consumers. The scope of my study is also restricts itself to North Goa region only. product attributes. The scope of my study restricts itself to the analysis of consumer preferences and consumption of Cadbury and Nestle Chocolates. There are many other brands of chocolates available but my study is limited to two major players of chocolates leaving behind the others. How individuals learn is a matter of interest to marketers.

LIMITATIONS OF THE STUDY_____________
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.`
OBJECTIVES OF THE STUDY______________
This project is based on the comparative study consumer Preference towards Nestle and Cadbury chocolates.
 To study the packaging of chocolates affecting the purchasing decision of chocolate buyers.
 Brand of chocolates affecting the purchase decision of chocolate buyer. Objectives of the study are: With respect to the chocolate selected and rated as no 1
 To study sweetness affecting the purchasing decision of customers.

In attempt to make this project authentic and reliable. consumer’s preference and customer’s satisfaction regarding Cadbury and Nestle chocolates. This project is based on information collected from primary sources as well as secondary sources. The actual consumers would be contacted on the basis of random sampling. The main limitations are as follows:
 Due to limitation of time only few people would be selected for the study. every possible aspect of the topic is kept in mind.
So the sample of consumers would not enough to generalize the findings of the study. I would go to the residents of Mapusa city and also some retailers to collect the data. an attempt would be made to present comprehensive analysis of consumption of Cadbury and nestle chocolates consumed by the people. The data would be used to cover various aspects like consumption. Sample Size and Design: A sample of 100 people was taken on the basis of the formula calculation.
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. Survey design: A related sample of population was selected on the basis of the overall population of North Goa and questionnaires were made. Nevertheless. The target people will be anyone who eats Cadbury or nestle chocolate only. In collecting requisite data and information regarding the topic selected. despite of fact constraints were at play during the Formulation of this project. After the detailed study.
RESEARCH METHODOLOGY______________
This chapter describes the methodology of the study.

2. The technique that I will use is bar technique for comparing the different chocolates under each brand i.
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. For sweetness of chocolates Ho : p1 ≠ p2 H1 : p1 = p2 Where p1 = proportion of people preferring Cadbury chocolates due to sweetness.
Data Analysis: The data is analyzed on the basis of suitable tables by using mathematical techniques. which is collected for the purpose of study.Sampling Frame: All the customers who buy Cadbury chocolates and Nestle chocolates. Data Collection: The data. Cadbury and nestle. The questions included are multiple choice questions. Hypothesis – 1. The data would be collected directly from respondent with the help of questionnaires. is divided into 2 bases: • Primary Source: The primary data comprises information survey of “Comparative study of consumer behavior towards Nestle and Cadbury chocolates”.e. For packaging of chocolates –
Ho : p3 ≠ p4 H1 : p3 = p4 Where p3 = proportion of people preferring Cadbury chocolates due to packaging. References from Library. P2 = proportion of people preferring Nestle chocolates due to sweetness. • Secondary Source: The secondary data would be collected from internet. Research Instrument: This work is carried out through questionnaires. And secondly hypothesis testing would is also used together with Chi Square test.

Number Of Respondents Preference for chocolates. Chocolate Brand Cadbury Nestle Number of Respondent 56 44 Percentage 56% 44%
From the above table no 1. and above graph we can observe that 56% of respondents prefer Cadbury chocolates and 44% of respondents prefer Nestle chocolate’s.
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.

05 degree of freedom.751
9.488 for 0. That is respondents purchase Cadbury chocolate due to sweetness. Where ƒo is observed frequency and ƒe expected frequency.488(tabulated value) Fig no 1 From the above tables we see that the calculated chi-square value is 19. If we compare it with figure1 we can observe that the calculated and the table value f does not all fall in the accepted region that is the un-shaded region.
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.751 and the table value is found to be 9. Hence there is association between sweetness and Cadbury chocolate purchase. we can conclude that the null hypothesis is rejected and alternate is accepted.ACCEPTED REGION
χ2 = 19.

If we compare it with figure2 we can observe that the calculated and the table value fall’s in the accepted region that is the un-shaded region.
3) The next is to find whether Packaging of Cadbury has any association while chocolate purchase. Hence there is association between brand and Cadbury chocolate purchase. Where ƒo is observed frequency and ƒe expected frequency. That is respondents purchase Cadbury chocolate due to its brand. We test the association with chi-square method.488 for 0. we can conclude that the null hypothesis is accepted and alternate is rejected.05 degree of freedom. TABLE 7 Packaging of Cadbury Chocolate’s –
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.725 and the table value is found to be 9.From the above tables we see that the calculated chi-square value is 6.

186 and the table value is found to be 9.186
9. Where ƒo is observed frequency and ƒe expected frequency.
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. we can conclude that the null hypothesis is rejected and alternate is accepted. That is respondents do not purchase Cadbury chocolate due to its packaging.Accepted Region
Rejected region
χ2 = 10. Hence there is no association between packaging and Cadbury chocolate purchase.488 for 0.05 degree of freedom.488 (tabulated value)
FIGURE 3 From the above tables we see that the calculated chi-square value is 10. If we compare it with figure3 we can observe that the calculated and the table value does not fall in the accepted region that is the un-shaded region.

brand and packaging are analyzed to find out which is the most dominant attribute with respect to Nestle chocolates.ANALYSIS FOR NESTLE ONLYIn the next finding the 3 attribute in the study that is Sweetness (taste). The calculation is done by adding the rankings of the attributes. Similarly for sweetness the total number of 5’s received is 3 and it being the lowest value it is multiplied by 1 since it’s the least preferred by those respondents. We test the relationship using chi-square method.For Nestle Finding the dominant attribute by ranking them (1 highest and 5 –lowest) Ranking’s Sweetness Brand Packaging No of 1’s 8×5 =40 7×5=35 9×5=45 No of 2’s 19×4=76 12×4=48 16×4=64 No of 3’s 9×3=27 16×3=48 6×3=18 No of 4’s 5×2=10 6×2=12 8×2=16 No of 5’s 3×1=3 3×1=3 5×1=5 TOTAL 156 144 148
1) The respondents were further divided into Sweetness preferring and non-sweetness preferring depending on whether they considered sweetness as a attribute in their purchase of Nestle chocolate. Here we find whether Sweetness has any association with the purchase of Nestle chocolate.
Table 9 .
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. for example in the above table the total number of 1’s received for Sweetness is 8 and these 8 responses are multiplied with 5 because it is the most preferred. From table 9 we can see that Sweetness is the most dominant attribute for Nestle (156) followed by Packaging (148) and finally Brand (144).

05 level
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. Where ƒo is observed frequency and ƒe expected frequency. Significant at 0. for υ=4. Hence there is association between sweetness and Nestle chocolate purchase.
2) The next is to find whether Brand of Nestle has any association while chocolate purchase. That is respondents purchase Nestle chocolate due to sweetness.808 . We test the association with chi-square method. TABLE 12 Brand of Nestle Chocolate’s –
NESTLE -CLASSIC BAR-ONE MUNCH MILKY -BAR KIT-KAT TOTAL
BRAND NO FOR BRAND TOTAL
4 4 8
8 2 10
7 1 8
7 0 7
1 1 2
27 8 35
Note: χ2= 6. we can conclude that the null hypothesis is accepted and alternate is rejected.accepted region that is the un-shaded region.

808 FIGURE 5
9. If we compare it with figure 5 we can observe that the calculated and the table value fall’s in the accepted region that is the un-shaded region.05 degree of freedom.488 for 0. Hence there is association between brand and Nestle chocolate purchase.Accepted Region
χ2= 6.488 (tabulated value)
From the above tables we see that the calculated chi-square value is 6. That is respondents purchase Nestle chocolate due to its brand. we can conclude that the null hypothesis is accepted and alternate is rejected. Where ƒo is observed frequency and ƒe expected frequency.
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.808 and the table value is found to be 9.

That is respondents do not purchase Nestle chocolate due to its packaging. If we compare it with figure 6 we can observe that the calculated and the table value does not fall in the accepted region that is the un-shaded region. Hence there is no association between packaging and Nestle chocolate purchase. we can conclude that the null hypothesis is rejected and alternate is accepted.Accepted Region
Rejected region
9.488 (tabulated value)
χ2= 12.05 degree of freedom. Where ƒo is observed frequency and ƒe expected frequency.488 for 0.
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.83 and the table value is found to be 9.83
FIGURE 6 From the above tables we see that the calculated chi-square value is 12.

Dairy-milk (11) .
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.
Using the chi-square test we tried to find if there is any association of various attributes of the study towards purchase of chocolate. but the results showed that none of the attributes studied had single handedly any association with purchase of chocolates.DISCUSSION OF IMPLICATION_____________
Referring to Table 1 we can say that percentage of respondents preferring Cadbury is 56% and respondents preferring Nestle is 44%. Perk (9) and lastly Temptation (7). Whereas in Nestle the most preferred chocolate is Nestle classic and Bar-one (11) followed by Munch (9) . The respondents were asked to rank the sub-chocolate’s of their preferred Company (Cadbury or nestle) it was found out that from$ the survey that in Cadbury brand more respondents prefer Cadbury Fruit and nut’s chocolate (17) . Milky-bar (7) and lastly Kit-kat (6). then followed by 5-star (12) .

Whereas with respect to Brand and packaging respondent prefer Cadbury chocolates over Nestle From the survey it was also found out that in Cadbury brand more respondents prefer Cadbury Fruit and nut’s chocolate (17) and in nestle Nestle classic and Barone (11) were chosen by respondents. Brand and packaging had influence in the purchase of chocolates. The study showed that with regard to sweetness respondents preferred to nestle chocolates.
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.CONCLUSION________________________
The study proposes that the attributes Sweetness.

Kat WITH RESPECT TO THE CHOCLATE RANKED 1 ANS THE FOLLOWING Q4. How frequently do you purchase chocolates? Daily Monthly Weekly Hardly Q6. What pack do you purchase? Small Medium Big/ Large Q5. If Cadbury rank the following chocolates according to your preference. (1 for Best and 5 for Last) Nestle classic Bar.bar Kit. Does you purchase of chocolate depend on brand? Strongly Agree Agree Can’t say Disagree Disagree Strongly Disagree Strongly Disagree Strongly Disagree
Q9. Does Sweetness (taste) attract you to purchase the selected chocolate? Strongly Agree Agree Can’t say Disagree Q7.Does packaging attracts you to buy chocolate? Strongly Agree Agree Can’t say Q8.APPENDICES
PROJECT REPORT ON CONSUMER PREFERENCE TOWARDS NESTLE AND CADBURY CHOCOLATES Q1. Do you eat chocolate? Yes No
Q2.star Perk Temptation or celebration Fruit and nuts If Nestle rank the following chocolates according to your preference. Which brand of chocolate do you prefer? Cadbury Nestle Q3. (1 for Best and 5 for Last) Dairy –Milk 5. Do you think the pricing done for the chocolate you buy is value for money? Yes No Can’t say PERSONEL DETAILS –
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.one Munch Milky.